I talk about these two stocks quite a bit. Let’s talk again…
Cal-Maine Foods, Inc. [[CALM]] had a nice day today. This one is HEAVILY shorted. I checked Yahoo’s statistics, and it has CALM shorted at 14 Million, or 91% of float!! What?! I mean, CALM is trading near a 52-high, and it’s shorted that heavily? Squeeze time.
Almost Family, Inc. [[AFAM]] reached 40 today, actually 41, then closed down just about 39 even. I raising my entry target. This one is relatively a small company, but the recent buying interest in this stock tells me we are heading higher.
Note to self…
I had a good time Surfing on the West Side!
Just as planned! Last night I posted possible surf spots, so I hope you were at the same beach as me. It was clear that the biggest swells were on the “west side” with commodities making that “cover on the news/buy on the dip” action the day after the Fed. Remember, going into the Fed, commodity traders were afraid of a rate hike, those weak hands got shook out.
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I was long CALM from the low 20’s, but sold due to its weird action.
Wow. That woulda doubled. There definitely is weird action, with it being this heavily shorted. Have any idea why so many hate it? I mean, is this the next OSTK?
… yes, i will get to the bottom of this! CALM, what are you up to?
Gio.
I hoped aboard AFAM on July 31 @ $33.72, right after it broke out from that bull fag, I mean flag. I like those relatively new issues in the medical sector. Old people and retards need to be taken care of too, and now that Obama is calling for more of my money to be “distributed” to those who sit on their collective asses, it will probably get even more support.
XLE and GDX finally disconnected from USO,and GLD__the whole sector was beaten up pretty badly. At least yesterday had all the bottom prices, so any repeats of those bottom prices will be the buy signal.
CALM pays a 5% dividend AUG 14_-looks like it’s running high into dividend date_-too bad there aren’t any thomson analysts covering the stock. I can’t get any growth figures or year to year eps figures–
90% shorts is crazy!, from what i can tell it’s been shorted at that ratio for a while. looks like they are speculating against lower egg costs? but that company has strong fundamentals and a good earnings report which is squeezing them.
The Bull Case: CALM has been able to pass higher feed prices through to consumers so far and they’ve held …. $7/sh is doable if egg prices hold around $1.40-1.50 this year and it pays 1/3 of qtrly earnings as a dividend … you can do the math.
Of the 55% of Cal-Maine’s stock that’s available to the public, more than 100% is sold short. That suggests short sellers, who bet on price declines, are executing sales before taking the normal step of securing shares to borrow. Management says it has complained to Nasdaq.
The Bear Case: Skeptics cite an uptick in hatches of baby chicks in November and December of last year and in some months this year as an indication additional supply will soon hit the market, depressing prices. Cal-Maine’s stock, they contend, could drop as low as $13. They also cite intense insider selling over the past 12 months.
A stradle or strangle may be appropriate … A-Dawg? Or Fly’s Army can get on board and hasten the squeeze before those other birds start laying.
Here’s a link: http://online.barrons.com/article/SB121512489340828151.html?mod=barrons_msn&ru=http://online.barrons.com/article/SB121512489340828151.html?
Wow, thanks for the link employee8. That’s some story. So, this is indeed turning into an OSTK stock, however, in an inverse fashion. OSKT just plain sucked. CALM’s case is based on supply and demand. All the speculators hoping supply jumps. I think it is too early for us to play a strangle here since this battle will take a few more weeks. For now, the bears are losing, and are showing little signs of fighting back. Let’s wait until both sides flex their muscles, then remind me to put in my strangle.
… you may however, may want to play a “timed-strangle”, where you would buy the calls today, and the puts a few weeks from now.